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3 years ago

Which of the following are criteria for determining whether to record an asset as a fixed asset?

Business

1 answer:

DochEvi [55]3 years ago

6 0

Answer:must be long lived and used by the company in its normal operations.

Explanation:

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One year ago, you purchased 300 shares of Southern Cotton at $32.60 a share. During the past year, you received a total of $280

Harlamova29_29 [7]

Answer:

Total Return on investment=12.678%≅12.68%

Explanation:

Given;

Number of Shares= 300

Purchasing price of each share=$32.60

Total Dividends= $280

Selling price of each share= $35.80

Find:

Total Return on investment=?

Solution:

Total Return on investment= $\frac{(Selling\ Price-Purchase\ Price + \frac{Total\ Dividends}{Shares})}{Purchase\ Price}$

$Total\ Return\ on\ investment=\frac{\$35.80-\$32.60 +\frac{\$280}{300}}{\$32.60} \\$

Total Return on investment=0.12678

In Percentage:

Total Return on investment=12.678%≅12.68%

3 0

2 years ago

In a make-to-order system, when a customer places a request for a product or service with a producer,

Mashutka [201]

<span>A work order is created as soon as the customer places the request for a product or service. Since the manufacturing or the creation of the item begins only after order is made, all the resources and the raw materials should be in place well before time.</span>

3 0

3 years ago

Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and

barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

8 0

2 years ago

"I’m not sure we should lay out $250,000 for that automated welding machine," said Jim Alder, president of the Superior Equipmen

NikAS [45]

Answer:

The annual net cost savings promised by the automated welding machine

Annual Costs savings in replacing 6 welders $108,000

Reduced Material costs $6,500

Total annual Costs savings = $114,500

Note there is a $3,000 annual maintenance cost that will then be taken off this savings amount to make up the Annual Net cash inflow of $111,500

A. The Net Present value is $72,227. Kindly refer to the attached document for the clear presentation

B. The project should be accepted because it delivers a positive NPV. Meaning the net benefit outweighs the cost of owning the new Assets.

The Discounted net Cash flow for the 6 years (aside the initial outlay) is $402,227.

Annually this comes to $67,038.

The benefit the business gets in the switch to the automatic welders is approximately $67,038 annually.

7 0

3 years ago

What is the primary way in which insurance allows you to be covered for a loss, even if you haven't had it for very long?

Viefleur [7K]

C. You share the risk with others.

4 0

3 years ago

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